Emmvee Explains Why Rising Silver Costs Have Limited Impact

Rising silver prices and China’s withdrawal of export incentives may be unsettling global solar supply chains, but Emmvee Photovoltaic Power Ltd says the impact on its cell and module economics is likely to be limited, as technology gains and value addition increasingly offset raw material volatility.

Speaking during the company’s Q3 FY26 investor call, Emmvee’s management said silver paste — often flagged as a key cost risk for solar cells — now accounts for a far smaller share of total cell costs than in previous years, following sustained reductions in consumption through process innovation and R&D.

“Silver consumption has already come down by more than 50–60% over the last three to four months, and we are targeting another 40% reduction going forward,” the management said, adding that silver paste currently costs about2 cents per watt, or roughly 13% of the cell price.

This, the company said, sharply limits the earnings impact even if silver prices rise further.

Why wafer price swings matter less than feared

Emmvee’s comments also come amid growing debate around the possible impact of China’s withdrawal of export rebates for solar components — a move widely expected to push up global wafer prices.

However, management said Indian manufacturers are structurally better positioned than is often assumed.

At the wafer stage, solar material costs are relatively low — around 1.5 cents per watt, management explained. But by the time the wafer is converted into a high-efficiency solar cell, the value rises to around 10 cents per watt, driven by processing, technology, yields and intellectual property.

“The bulk of value addition happens after the wafer stage,” the company said, suggesting that modest wafer price increases are unlikely to materially disrupt margins for integrated or semi-integrated Indian players.

China rebate rollback seen as net positive

Rather than a threat, Emmvee views China’s rollback of export incentives as structurally favourable for Indian manufacturers, as it narrows the pricing gap between imported Chinese modules and domestically produced alternatives.

“With export rebates going away, the artificial price advantage enjoyed by Chinese suppliers reduces,” management said. “That improves competitiveness for Indian manufacturers, especially in DCR-linked and government-backed projects.”

The company expects this dynamic to accelerate the shift toward domestic content requirement (DCR) procurement, particularly as India moves closer to a largely DCR-based market by the end of the decade.

DCR, TopCon and technology transition

Emmvee said DCR projects now account for around half of its order book, with current execution closer to 40%, and bulk DCR realizations at about 24–24.5 cents per watt.

The company has fully transitioned to TopCon technology for FY26 and has already begun producing G12R-format modules, positioning itself for higher-efficiency requirements in both domestic and export markets.

It also noted that module capacity is intentionally kept higher than cell capacity, reflecting a made-to-order module strategy, while cell manufacturing is largely made-to-stock, ensuring better utilisation and supply flexibility.

Storage, grid stability and the next phase

Beyond manufacturing economics, Emmvee highlighted the growing importance of solar-plus-storage tenders, with battery energy storage increasingly seen as essential for grid stability.

Recent hybrid tenders have closed at tariffs as low as ₹3.11 per unit, management noted, underscoring solar-plus-storage’s rising competitiveness against thermal power.

Looking ahead, the company said it plans to addingot and wafer capacity, but will time investments carefully, awaiting greater clarity on the proposed extension of ALMM mandates to wafers.

Big picture: cost risks give way to structural advantage

Taken together, Emmvee’s commentary suggests that concerns around silver prices or wafer cost inflation may be overstated, particularly for manufacturers that are moving up the value chain and investing in efficiency-led technology.

“As the market matures, the focus shifts from raw material volatility to execution, technology and integration,” the management said, adding that by FY2030, India’s solar market is expected to be almost entirely DCR-driven.